Normally on sites like Kickstarter or IndieGoGo, a project is not funded unless it meets its fundraising goal. Even if it’s $1 short on the day of the deadline, everyone’s money is refunded. But, on IndieGoGo and other crowd-sourcing sites, a ‘Flexible Funding’ option exists where all funds pledged during the campaign are delivered, regardless of whether the goal is met.
There are obvious situations where ‘Flexible Funding’ makes sense (as was the case with our successful Avarice campaign), but for the average fundraiser, it should be a no no.
What’s so bad about it? Wouldn’t you want to keep the money you raised? Isn’t some money better than none?
Whether you’re a potential donor or hopeful fundraiser, here are three warnings against the dangers of ‘Flexible Funding:’